Schwab’s Crypto Entry Pressures Robinhood’s Revenue Engine

Robinhood’s stock slipped 0.54% to $86.85 on April 16 as investors weighed a new competitive threat: Charles Schwab’s planned launch of spot crypto trading for retail clients. The move puts Schwab directly into a segment that has powered user engagement and transaction-based revenue on Robinhood’s platform. Crypto trading has been a key growth lever for Robinhood, especially among its core retail base. Now, competition from a larger, well-capitalized brokerage with over 37 million client accounts introduces real pressure on Robinhood’s volume and pricing power. Trading in Robinhood shares spiked to 51.3 million shares, 64% above its three-month average, signaling active investor reassessment. At the same time, the regulatory landscape is shifting in Robinhood’s favor. The SEC’s removal of the $25,000 pattern day trader minimum could expand access to leveraged trading for millions of retail investors, potentially boosting trading frequency on Robinhood’s platform. But that tailwind arrives just as a new headwind emerges. The company’s next earnings report will be critical—not just for numbers, but for clarity on which force is stronger. Investors will be watching whether the SEC rule change drives a measurable increase in retail trading volumes, or if Schwab’s crypto push is already eroding Robinhood’s user activity and revenue momentum.